India is a country named as country of villages. But rapidly developing towns and urban areas. In metros developing buildings called skyscrapers with latest architecture, the small towns spreading with new buildings around the existing towns. Beautiful roads and flyovers are additional attractions. Surveys are describing that India got highest rate of change of urban people in developing countries. By 2050 about 85 crores people will live in Cities. The population will be equal to Germany, Brazil, Russia, Japan and USA.
The real estate growth in India is divided into 3 Categories
Presently the real estate business is very attractive in Mumbai, Delhi, Bangalore and Hyderabad Cities. By 2030 more than 60% of people (most of the people India) will be living in cities. So we may just imagine the necessity and demand for real estate and construction business in India.
Here are few tips while purchasing new house or building
- Approvals from municipality/ municipal corporation
- Approval from Airport authorities
- Approval Electricity Boards
- Approval from Area development authorities
- Approval from pollution control boards
- Approvals from Forest & Agriculture
- Check water and electricity connections
- Check whether any industrial pollution issues
- Check for approach roads
- Check for drainage, sewerage and garbage arrangements
- Check for public transport facilities, hospitals,
- educational institutions, shopping facilities etc.
- Previous Ownership/Title documents for last 13 years
- Previous encumbrance documents for last 13 years
- Tax paid receipts
- Have a clear idea
- Don’t love different kinds of buildings but understand exactly your requirements
- Research from good agent
- Enquire with more than 3 agents
Definition and Meaning: Area of land below the ground and space in the air and any constructions on it. Real estate means buying or selling of plots and flats. Real estate business consists buyer, seller, brokers, sellers, agents etc., ( Here parties like buyers, sellers, agents may be individuals, firms, companies).
Basics of Real Estate: Let us learn some real estate basics like property types, agents, title, brokers, trends etc.
Lease Purchase (Rent buy): The land lord (owner) and tenant (occupant) enter into agreement saying that the tenant will purchase the property (home) which he/she occupied for rent. The terms and conditions of the agreement may change with or without changing the original agreement. The sales transaction may takes place at agreed price which parties agreed at the time of original agreement or may takes place at appraised value. That means property may negotiable or not at the time of sales transaction taken place. In this transaction normally the seller/land lord asks for non refundable amount at the time of agreement. Lease purchase is good for both buyer and seller.
Buyer: In real estate terminology buyer means a person who is paying money to seller of the property which is selling.
Commercial Property: A property is intended to use for profit business. For instance Restaurants, Servive stations, shops, shopping malls, offices etc., We can’t say this property as residential or Industrial property. These properties may be purchase for outright or given for lease through brokers.
Residential Property: Townships, apartments, individual houses, condominiums / Co-ops are known as residential property.
Rights and possession: Real estate ownership may be in many ways. Sometimes we may find some body will have rights to use it without having ownerships. In this cases real estate people must thoroughly understand and advise their buyers and sellers the facts of the property.
Vacant Land: A part/bit or land is without structure, development, building on its surface is known as Vacant land. In other words a land or property not currently being used (A raw land).
Seller: A person who got title and sold real property and receives money.
- Meaning : An agent works for broker. Broker is the owner/boss of the real estate company. The broker works under guidance of agent. Very rarely the broker involves directly in the real transactions.
- Misunderstanding : Many of us thinks that broker is better that agent. Usually a broker is real estate company owner or manager does have less knowledge on transactions. So some times he may not be a better agent. But agent got better understanding on transactions.
- Duties: A real estate agent works on behalf of broker. The broker gets done transactions through agent.
- Requirements : An agent must have knowledge of business management. The brokers must acquire knowledge of real estate ethics and law.
- An agent receive money from broker. The Broker receives money from parties involved in the transactions.
- Bargain and sole deed : With this document the buyer may not get protection from encumbrances but the deed is useful for other important purposes
- General Warranty deed : This is the very important deed which protects buyer. Many rights, covenants and warranties explained by the seller to buyer.
- Special Warranty deed : This deed doesn’t provide security to buyer but in this deed the seller grants few warranties.
- Quitclaim deed : This is the deed provides least warranties among above all deeds.The purpose and usage is very limited.
From the above you can understand there is lot of scope for real estate because of fast growth. It would be better time to own real property. Slowly the demand and prices will go high and high above. We believe that the above points may help real property buyers. The above tips are only suggestions. Above all we advise buyers to use their wisdom and take decisions based on place, time, seller and locality.